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AI (vs. Human) Recommendation on Luxury Services

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Detalhes bibliográficos
Resumo:Despite Artificial Intelligence (AI)'s emerging trend in luxury services, recent research shows mixed findings regarding its impact. This paper builds upon the optimum distinctiveness theory and the need for uniqueness to examine AI's effects on consumers’ willingness to accept luxury suggestions. Four studies reveal that using AI recommendations in the luxury sector reduces consumers’ differentiation, which has downstream effects on luxury services and causes brand dilution. Findings further indicate that when specific characteristics of luxury, such as uniqueness, are enhanced, it damages consumers’ willingness to accept luxury recommendations, and thus, AI backfires. The study findings have important theoretical and managerial implications, suggesting when AI should be used to provide recommendations for luxury experiences.
Autores principais:Gonçalves, Ana Rita
Outros Autores:Pinto, Diego Costa; Shuqair, Saleh; Imanbay, Anel; Mattila, Anna S.
Assunto:Artificial intelligence Differentiation Luxury Recommendation Services Strategy and Management Marketing SDG 8 - Decent Work and Economic Growth
Ano:2024
País:Portugal
Tipo de documento:documento de conferência
Tipo de acesso:acesso aberto
Instituição associada:Universidade Nova de Lisboa
Idioma:inglês
Origem:Repositório Institucional da UNL
Descrição
Resumo:Despite Artificial Intelligence (AI)'s emerging trend in luxury services, recent research shows mixed findings regarding its impact. This paper builds upon the optimum distinctiveness theory and the need for uniqueness to examine AI's effects on consumers’ willingness to accept luxury suggestions. Four studies reveal that using AI recommendations in the luxury sector reduces consumers’ differentiation, which has downstream effects on luxury services and causes brand dilution. Findings further indicate that when specific characteristics of luxury, such as uniqueness, are enhanced, it damages consumers’ willingness to accept luxury recommendations, and thus, AI backfires. The study findings have important theoretical and managerial implications, suggesting when AI should be used to provide recommendations for luxury experiences.